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Buachaill, Barrister

Category: Republic of Ireland Law

Satisfied Customers: 10790

Experience: Barrister 17 years experience

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My company based in, sells Communion dresses (main product).

Resolved Question:

My company based in Dublin, sells Communion dresses (main product). We have a contract of exclusivity with our supplier for Ireland and Northern Ireland. One of my competitors recently posted on their Facebook business page that they have a new collection coming in which turned out to be the products to which, we have exclusivity with the original manufacturer/designer.We have a “One Dress Per School Policy” and because it affects our business we send a message to the business owner to notify her. This business is obtaining the original products from a third party and after notifying her of our exclusivity in Ireland over these products, she went forward to disclose private and confidential information about our sources and produts. Targeted directly and intentionally against our business and image in Ireland . We are under great pressure with costumers and confusion regrading our One Dress Per School Policy where this other business is taking advantage of the bad comments our business suffers and destruction of image . This other business is revealing sources of production and prices which should be confidential. All this is done solely for the porpuse of ruining our image. This, already has a costly effect on our business through costumers asking for deposits back as we can’t guarantee our One Dress Per School Policy, numerous appointment cancellations and bad customer reviews which we worked so hard to build.

1. Dear Alin H, you need to take injunction proceedings enforcing your exclusivity clause against both the supplier and this competitor who is retailing the dresses over which you have an exclusivity agreement.

2. Essentially, the taking out of an injunction is how you protect the goodwill in your business. If necessary you also sue the third parties who are supplying your competitor with the similar dresses. However, the aim is to force the other parties to comply with your exclusivity clause.

3. Be aware that as well as enforcing this exclusivity clause, you can take an action for breach of confidence to protect the commercial dealings of your business from disclosure by this rival competitor. This would include the matters you mention, such as sources of production and prices.

5. I would advise you to see a solicitor and get him to instruct a barrister so you can get injunction proceedings issued against all parties. The solicitor will initially write a letter before action calling upon the parties to desist. However, if they don't, you will have to issue injunction proceedings to get your relief in court.

My supplier is behind me 100%. They send email to the competitors company requesting to take down their photos and stop any sale of their products as our company has exclusivity. They refused this and the argument is between the supplier and the distributor which still doesn’t help me.

7. You need to get together with the supplier and sue the distributor and the competitor with them. There is no point in sitting on your hands and complaining as otherwise the situation will just continue. Additionally, you shouldn't rely upon your supplier to solve the problem as they are only interested in more sales anyway - from whatever source they get them!

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